Renergen (ASX:RLT) confirms helium and gas at R2D2 – The Market Herald

0
215



Market Herald logo

Subscribe

Be the first with the news that moves the market

  • Renergen (RLT) completes drilling at the R2D2 well at the Virginia Gas Project located in South Africa
  • The well was suspended back in May pending various approvals after gaseous odours and unquantified helium were detected
  • The company says collected samples confirm gas contents of helium at 1.9 per cent and methane at 90.8 per cent
  • R2D2 is reportedly producing gas at a rate of 187 thousand standard cubic feet per day – which is higher than the company expected
  • Shares last traded 4.9 per cent higher at $2.55 on October 29

Renergen has completed drilling at the R2D2 well at the Virginia Gas Project located in South Africa.

The project is the first and only onshore petroleum production right in the country and RLT is working to expand it to produce liquid helium and liquefied natural gas.

In May, the company reported the detection of gaseous odours in the deeper section of the well, and subsequently paused work while awaiting approvals to drill to final depth.

Since then, drilling has been completed and RLT said the samples confirm gas contents, with helium of 1.9 per cent and methane of 90.8 per cent.

The well is also said to be producing gas at a rate of 187,000 standard cubic feet per day which the company said makes it one of the more significant gas strikes within the Virginia Gas Project.

While the helium levels were as expected by RLT, CEO Stefano Marani said the flow rate is higher than expected.

Mr Marani said the company is “really pleased” with the results which reaffirm its modelling of the predicted gas bearing structures.

Shares last traded 4.9 per cent higher at $2.55 on October 29.





LEAVE A REPLY

Please enter your comment!
Please enter your name here